Section 657.043 - Reserves(1) ALLOWANCE FOR LOAN LOSSES ACCOUNT.-The credit union shall maintain an account for loan and lease losses. The amount in the account should be consistent with applicable United States generally accepted accounting principles and industry guidance provided by regulatory agencies or as required by the office. The account must be provided for before paying a dividend.(2) REGULAR RESERVE.-The regular reserve shall belong to the credit union and shall be used to meet losses. The regular reserve may not be decreased without the prior written approval of the office or as provided by rule of the commission.(3) ALLOWANCE FOR INVESTMENT LOSSES.-The credit union may maintain a contra asset account to provide an allowance for investment losses, which will not be included in the determination of equity. The account must be maintained consistent with the rules of the commission.(4) SPECIAL RESERVES.-In addition to such regular reserve, special reserves shall be established:(a) To protect members against losses resulting from credit extended or from risk assets when required by rule, or when found by the office, in any special case, to be necessary for that purpose; or(b) As authorized by the board of directors.(5) BORROWING MONEY.-A credit union may borrow money and issue evidences of indebtedness for a loan or loans in the usual course of its business and secure such obligations by mortgage or pledge of any of its assets. Aggregate borrowings may not exceed 50 percent of the capital that is not impaired by losses of the credit union. However, this percentage limitation does not apply to loans from the National Credit Union Administration.ss. 1, 6, ch. 80-258; s. 443, ch. 81-259; ss. 2, 3, ch. 81-318; ss. 16, 58, ch. 85-82; s. 1, ch. 91-307; ss.1, 94, ch. 92-303; s.10, ch. 93-111; s.1752, ch. 2003-261; s.23, ch. 2005-181.